By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, June 22 – ICE Futures Canada canola contracts were up sharply on Monday, setting fresh contract highs for the second consecutive session as speculators and commercials remained on the buy side.
After breaking above some major resistance levels on Friday, the charts are pointing higher still for canola, according to a broker.
Weather concerns across Western Canada also remained supportive, with large areas of Alberta and Saskatchewan in need of more moisture.
A rally in CBOT soybeans and soyoil provided some spillover support for canola as well, according to participants.
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However, canola crush margins were down again on Monday, hitting some of their weakest levels in years, which limited the upside potential, according to participants.
About 37,132 canola contracts were traded on Monday, which compares with Friday when 28,336 contracts changed hands. Spreading accounted for 26,742 of the contracts traded.
Milling wheat and durum were both untraded, but barley moved lower with 25 contracts trading hands.
Settlement prices are in Canadian dollars per metric ton.
Price Change
Canola Jul 513.60 up 9.90
Nov 515.50 up 12.80
Jan 510.10 up 11.50
Milling Wheat Jul 209.00 unch
Oct 214.00 unch
Durum Jul 298.00 unch
Oct 298.00 unch
Barley Jul 207.00 unch
Oct 199.00 dn 3.00
SOYBEAN futures at the Chicago Board of Trade were up Monday 17 to 19 cents per bushel, as a weaker US dollar and heavy rains in the Midwest supported prices.
A weaker US dollar accounted for some strength in soybean prices, as it makes exports more attractive to international buyers.
Heavy rain in the US Midwest has had a bullish effect on soybean prices, according to analysts.
Overly saturated soil can damage soybean crops, causing root rot and stinted growth.
SOYOIL settled stronger on Monday, following soybeans.
SOYMEAL prices settled stronger on Monday, supported by stronger US soybean futures.
CORN futures in Chicago settled five to seven cents higher on Monday, in light of floods and reports of corn yellowing and susceptible to disease in the Midwest.
The weaker US dollar and spillover from wheat and soybeans were also supportive.
However, market watchers say the southern Great-Plains are expected to see warm, dry weather, which is bearish.
The majority of corn crops in the States are healthy, according to the US Department of Agriculture.
WHEAT futures in Chicago were up 12 to 13 cents on Monday, amid concerns about winter-wheat harvest delays in the US due to rainy weather.
Short covering amid ideas that the market was oversold added to the bullish tone.
Analysts say the wheat market is watching weekly US crop progress reports amid varying weather forecasts.
– The European Union’s 2015 wheat crop is estimated to be 4.7 per cent less than last year’s yield, but still higher than the five year average.
– Ethiopia bought 240,000 tonnes of optional origin wheat, analysts say.
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